BASF Selling Textile Chemicals Business to Archroma
BASF is selling its textile chemicals business for an undisclosed sum to Archroma, a Reinach, Switzerland-based company owned by private equity investor SK Capital Partners.
Still to be approved by antitrust authorities, the transaction is set to close in the first quarter of 2015. It comprises, alongside BASF's global textile chemicals business, the assets of the German group's Karachi-based subsidiary BASF Pakistan.
The BASF business, which will be integrated into Archroma's Textile Chemicals Specialties Unit, employs 290 people, including 230 in Asia.
Selling the activities will sharpen the focus of the German group's Performance Chemicals division on growth-driven customer industries, BASF said.
In a very competitive and highly fragmented market, division head Hans W. Reiners, said BASF has positioned the textile chemicals business as one of the leading global suppliers.
Ongoing consolidation in the market means that critical mass is needed to grow the business successfully, Reiners said, adding that he sees positive future growth perspectives for textile chemicals under Archroma's umbrella.
The Swiss firm is in the process of building a specialty chemicals business from assets flogged off by leading European and American chemical producers, including Clariant and most recently Chemtura. In May of this year, Archroma also acquired 49% of textile manufacturer M. Dohmen.
In the latest deal, "we are bringing together the century-old history of BASF textile chemicals products, technologies and people with Archroma's already strong heritage from Hoechst, Sandoz and Clariant," said the company's CEO, Alexander Wessels.